Clouds Build Over Junk Rally JPMorgan Says Has Topped Out
- Several companies forced to scrap or alter terms on bond sales
- JPMorgan Asset Management cuts high-yield bond holdings
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A rally that sent yields on the world’s riskiest corporate bonds to a three-year low is showing signs of faltering.
A string of companies including Virgin Media and Berry Global Group Inc. have had to scrap or alter terms on planned debt sales, the biggest exchange-traded fund tracking junk debt has suffered two consecutive months of outflows, and a gauge of high-yield energy bonds has plunged alongside last month’s drop in oil prices.